Norcros plc (LON:NXR), the market-leading designer and supplier of high-quality bathroom and kitchen products, will announce its full year results for the year ended 31 March 20251 on 12 June 2025. In advance of this, the Group is pleased to provide the following scheduled trading update.
Underlying operating profit in line with expectations
During the year, the Group continued to demonstrate the attractiveness of its business model and the strength of its innovative products and customer service which underpin its leading market positions. As a result, the Board expects underlying operating profit for the year ended 31 March 2025 to be in line with market expectations2.
Group revenue for the year ended 31 March 2025 is expected to be marginally ahead of the prior year on a constant currency (“CC”) like for like (“LFL3“) basis. Reported revenue is expected to be 6.2% lower than the previous year at circa £368 million (2024: £392.1 million).
| Revenue versus prior year | ||
| LFL | Reported | |
| UK | 1.0% | (9.1%) |
| South Africa | 1.3% | 1.3% |
| South Africa at CC | 0.4% | 0.4% |
| Group | 1.1% | (6.2%) |
| Group at CC | 0.8% | (6.4%) |
In our UK businesses, LFL revenue was 1.0% ahead of prior year demonstrating market share growth in a weak demand environment. Reported revenue was 9.1% lower than the prior year largely due to the sale of Johnson Tiles UK which completed in May 2024. These market share gains were again driven by new product launches, excellent supply chain management and award winning customer service.
In our South African business, revenue for the year was 1.3% higher on a reported basis and 0.4% higher on a CC basis. Energy disruptions were minimal in the period and despite consumer confidence remaining subdued, our retail business, in particular, is well-placed to benefit as the market gradually recovers.
Financial position
The Group remains in a strong financial position with net debt (on a pre-IFRS 16 basis) at 31 March 2025 expected to be circa £37 million (2024: net debt of £37.3 million) with cash generation in the period impacted by cash outflows of circa £4.4 million at Johnson Tiles South Africa. Net debt leverage is circa 1.0x underlying EBITDA and provides a solid foundation from which the Group can execute its strategic priorities.
Strategic review of Johnson Tiles South Africa
In line with our strategy to develop a capital light and cash generative business portfolio, the Group has initiated a strategic review of Johnson Tiles South Africa which should conclude by July 2025.
Challenging demand conditions in the tile manufacturing segment of the South African market have continued, exacerbated by a recent material increase in tile manufacturing capacity in the region which has made it increasingly difficult to sell our capacity profitably.
Johnson Tiles South Africa delivered external revenue for the year ended 31 March 2025 of circa £12m (representing circa 3% of Group revenue) a small underlying operating loss pre-South African central costs in the year and operating cash outflows of circa £4.4m.
Thomas Willcocks, Chief Executive Officer, said:
“We have again delivered a strong set of results, underpinned by the strength of our brands, their leading positions and the successful execution of our strategy. There is clearly macro uncertainty at present with the consequences of increased global tariffs yet to play out. Norcros has negligible direct exposure to the USA (revenue less than 0.5%) and a proven local and international supply chain, again with no direct exposure to the USA.
The Group will proactively manage our way through this period, as we have successfully done in the past, whilst we continue to look to capitalise on the further share gain opportunities that our scale, supply chain resilience and strong balance sheet provide.”
Notice of results
The Group will announce its full year results for the year ended 31 March 2025 on Thursday 12 June 2025.
1. The accounting reference ‘year to 31 March 2025’ relates to the 52-week period commencing on 1 April 2024 and ending 30 March 2025
2. Norcros-compiled market consensus for the year to 31 March 2025 underlying operating profit is £43.0 million with a range of £42.0 million to £43.8 million
3. LFL (like for like) adjusted for Johnson Tiles UK and Norcros Adhesives
